Examining commitment and heterogeneity within the membership base of agricultural co-operatives : an empirical study of a large New Zealand dairy co-operative : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Agribusiness at Massey University, New Zealand
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Date
2020
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Massey University
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Abstract
A strong relationship between member and co-operative is vital for agricultural co-operatives. Yet most of the research on agricultural co-operatives is centered on non-relational aspects such as efficiency. Although these conventional economic centric approaches are useful in understanding co-operatives and evaluating its performance, they are not comprehensive enough. Studies on the member - co-operative relationship which require an examination of co-operatives from a socio-psychological perspective are lacking. This research gap is addressed in this thesis via first identifying three important socio-psychological phenomena in agricultural co-operatives – 1. Commitment, 2. Heterogeneity and 3. Social Capital, and presenting a conceptual framework that links the three. Thereafter, the commitment and heterogeneity sub-components of the framework were further unravelled and empirically examined by randomly surveying 2,000 members of Fonterra Co-operative Group, of which 568 responded. The organisational commitment dimension of commitment is decoupled into three components – affective (emotive), normative (ideological) and continuance (utilitarian), and the commitment to collective action dimension into two components – patronage and governance. Fonterra had moderately high levels of affective, moderate levels of normative and slightly low levels of continuance commitment. The level of commitment to collective action was moderately high as the levels of commitment to both patronage and governance were moderately high. Importantly, there was a positive association between commitment to collective action and affective and normative commitment but not continuance commitment. This suggests that it is the emotive followed by ideological aspects of membership that influence a member’s commitment to collective action, and not the utilitarian or financial benefit aspects. Heterogeneity was measured and analysed using 35 heterogeneity sources that were categorized under three dimensions – farmer-member, farm-business and member-interest. Fonterra had high levels of heterogeneity with most of the sources in all three dimensions showing high heterogeneity. Of the three dimensions, member-interest, followed by farm-business showed the greatest heterogeneity and sources within them were most likely to result in differences in affective commitment, normative commitment, continuance commitment, commitment to collective action as well as commitment to governance and patronage. In contrast, most of the sources within the farmer-member dimension were not associated with either organisational commitment or commitment to collective action.
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Keywords
commitment, collective action, heterogeneity, co-operatives, agribusiness, Agriculture, Cooperative, Psychological aspects, Social aspects, New Zealand